ABOUT RETAIL PARKS
During the last decade Retail Parks in Sweden has experienced a radical development both in terms of extensive increased volume/area and also in terms of new actors/tenants entering the market creating a higher level of competition. This development can be explained by a combination of various factors, one of these is of course the forces of the consumers and their consumer behavior that require convenient forms of shopping. Another factor is the competition among municipalities trying to become an attractive area to host both companies and consumers. The aggressive development of various developers that are driven by the preferences from the retailers has also had a strong impact on this development.
It has become quite clear that the market today is facing a situation with a high level of overcapacity in terms of premises. Those locations that previously have been defined as triple-A locations may very well become tomorrow’s B- or even C-location. Naturally there are numerous of other factors influencing this development apart from real estate developers developing new sites. Radical structural changes such as a relocation of an IKEA establishment has proofed to have an enormous impact on the attractively of an area. These factors are all part of creating a constant dynamic change in the market that puts RED in front of new challenges.
RED ask themselves:
- What is happening with yesterday triple A location?
- What is or will become tomorrow’s triple A location?
- What will the impact of the internet trade have on retailers and there stores?